Making money with your CUT

[Charlie175]

Locally you have to get a contractors license to offer services (like mowing, bush hogging and such), have you found that it's worth it to offer services to try to earn a little back on your investment?
Or do you go the "under the table" route?

Also trying to figure out how to price the services (again this is for small time work, nothing large)

 

[Slacker]

I go under the table, as do 99% of the folks in this area who offer tractor services. I do have customers sign a waiver (liability) before work is done.
Eventually I'll be setting up a LLC, but not this year. I don't have enough clients yet to warrant the LLC, but I will in another year or so.

I do backhoe, mowing, FEL work, auguring, rototilling, leveling, twitching logs, raking etc.

 

[John47]

Locally you have to get a contractors license to offer services (like mowing, bush hogging and such), have you found that it's worth it to offer services to try to earn a little back on your investment?
Or do you go the "under the table" route?

Also trying to figure out how to price the services (again this is for small time work, nothing large)

Thats what your led to believe, but do your research on licenses, you may be mildly surprised that they can't convert a right into a privaledge.

 

[Charlie175]

They are pretty aggressive in pursuing you for a license if they see or hear you advertising services.

I checked and the license is only $30, but yearly you have to pay a fee based on your earnings. I can't see myself earning that much doing this so the fee would be low, at least I would be legal...
I agree on the waiver to help cover yourself

 

[John47]

They are pretty aggressive in pursuing you for a license if they see or hear you advertising services.

I checked and the license is only $30, but yearly you have to pay a fee based on your earnings. I can't see myself earning that much doing this so the fee would be low, at least I would be legal...
I agree on the waiver to help cover yourself

Don't take "their" word for it, do YOUR research!!

A few years ago, I think it was Arizona, a sign writer was busy painting a sign outside a shop in a large city. An "upstart" city "license cop" asked to see his license, he said I don't have one nor am I required to have one.
The "upstart city license cop" wrote him a ticket and ordered him to cease work. He just told him where to get off, and said "see you in court"
He appeared, represented himself, was in there but a few minutes and walked free, NOT GUILTY of any offense, costs against the city for
his lost time!

Like I say, DO YOUR HOMEWORK. You'll be mildly surprised, BUT don't make the mistake of Incorporating!!! Stay am ordinary working man, thats the KEYWORD, working man.

 

[Bill_C]

Hmmm...I personally think the "you really don't need a license despite what they say" advice falls in the same category as "you really can't be required to pay income taxes"....

For example....the State of Oklahoma passed legislation years ago that explicity says that if you want to practice engineering, you must have an engineering license. The state licensing bureau has the authority to levy fines and enforce disciplinary actions accordingly. It would be difficult for me to believe that other governmental jurisdictions would not have the authority to enforce licensure laws.

There may indeed be levels of income or other qualifications that allow some limited work without a license, but if the licensing agency says you need a license, I believe the courts would likely agree with them. Certainly nobody has beat the income tax rap yet.

However, I certainly agree that one should take a little time to do their homework with respect to state and local licensing laws.

 

[garydc]

Don't know about in other parts of the continent but where I live no need for
a licence. I've even done work different times for the local municipality, but I do carry contractors insurance & have a business # with the fed's. I've even done work different times for the local municipality. Gary

 

[MossRoad]

Locally you have to get a contractors license to offer services (like mowing, bush hogging and such), have you found that it's worth it to offer services to try to earn a little back on your investment?
Or do you go the "under the table" route?

Also trying to figure out how to price the services (again this is for small time work, nothing large)

I'd be most concerned about liability insurance in case you damage property or person. Even your best friend or relative can turn ugly when money is involved. C.Y.A. ... Cover Your Assets.

 

[plowking]

I have my tractor covered under my business insurance. Some businesses,corporations will want to see a certificate of insurance before you are allowed to work for them. I have a neighbor with a bota TLB I can't refer because he stays small and does favors,small jobs with no insurance. Nothing wrong with staying small,just doesn't charge or charge enough to afford insurance. His homeowners might cover it only on his property. plowking

 

[JiminGa]

I pay close to $200 a year in licensing plus another $1500 for insurance to run my business...it makes it really hard for those of us that do it the right way to compete with folks that don't when they come out that much ahead in overhead costs. But on the other hand, I know I am legal and covered if something happens or some policeman/code enforcement officer stops me to check my paperwork. also, when I go to pull a permit for something, I have no issues getting what I need.

 

[CurlyDave]

From my perspective, you need insurance.

It only takes one accident to put you and your family in a financial hole you will never recover from.

 

[rcowan]

We have to identify as "Not a Licensed Contractor". It's a blue sticker.
The liability insurance may not be necessary but sure makes sense in this litigation happy world we live.

 

[Farmwithjunk]

Way too many agencies cross reference information to take the risk of NOT complying with all requirements. I deal with local, state and federal taxation, license in a couple smaller "3rd class cities", insurance, both liability and workers comp, and I pay close attention to one that sunk a buddy of mine. He was in the mowing business also, albiet "off the record". He posted a few signs around town. Local sign ordinance requires a permit. Code enforcement officer took down the phone# and name off the signs and shared what he knew with local "sinking fund" tax office. They share info with state and feds. A $10 sign resulted in IRS knocking on the door.

Do you feel lucky?

It may or may NOT be a good thing that "BIG BROTHER IS WATCHING", but rest assured, he is, and will continue to watch ever more closely.

In this area, commercial mowing is getting cut-throat. One local (legal) contractor is turning in any "illegals" he runs on to (tax, license, insurance [workers comp]) . They can operate at MUCH lower overhead, therefore pricing work where "legals" can't legitimately compete. Two ways to level the playing field. Operate illegally also, or run the illegals out of business.

 

[Charlie175]

I already have business insurance (Different type of business), I just need to check to see what it covers.

Thanks for all the advice.

 

[AlanB]

I already have business insurance (Different type of business), I just need to check to see what it covers.

Thanks for all the advice.

From your tag, you are familiar with risk.

It is a risk to operate on the edges of legality, although sometimes it is the only way to stay profitable.

You just need to do a risk assesment, and see what works out for you.

Realize that what all of us on the board say, May, or may not apply in your municipality.

My personal experience, arguing with the city government has just been a dead loss. I try and comply with their regs, and slide through without making too many waves.

And yes, my next door neighbor runs under the table, and it eats me up sometimes when I see it.

At the end of the day, it is your RA, and perception of the risk that counts. And to me, you have started that by asking here.

 

[LoneCowboy]

this again?

liability insurance, workman's comp (state specific, may not be required), commercial auto coverage (for your truck and trailer, commercial policies are not cheap and not like homeowners), licenses, permits, fees and fees and fees. In colorado (although no place else), you are required to get SMM plates for your self-propelledmachinery used commercially (i.e. tractor) (big bucks, total ripoff). You are now a commercial vehicle, you need to follow all DOT regulations, in many states you need a DOT number (and all that that implies)., inspections, etc.

Oh, and somewhere in here, you're supposed to make money for yourself.

I, like FWJ's friend, have also started calling in illegally operating contractors. Either play by the rules, or get out. It's simply not fair or reasonable to those of us burdened with paying all these taxes/fees/permits, trying to play by the rules and make a living at it while Mr illegal contractor undercuts all the prices because he/she has no costs.

If you don't know what to charge, then you don't know what your costs are.

 

[rcowan]

Illegal or not-a-licensed contractor? There is a difference.
It depends on where you live. This board is not state and community specific.
Do your research.
Don't judge.
IF it's illegal and you know it report it.

 

[pitt_md]

I don't know about the rest of you but I have had it in regards to the "rules and regulations". It would seem to me that the "rules and regulations" are set up to allow others to force you to pay them so you can work. Kind of like the mob, if you pay us money we will make sure no one causes you trouble...

I just built a new house and tore down my old one. At my closing I was reading what all the "fees" were about and they had a "transport" fee of $175.00. I asked what that was for and they said that was a "standard charge" applied to all the loan closings. OK but what is it for? Where are you "transporting" my paperwork that costs $175.00 What followed was a awakward period of silence. No one could justify this charge. Then you have the $600 dispersal fee (const. loan). Thats right folks you pay for the loan, then your forced to pay someone to write the checks for you. They say its required because "they" have to make sure all the lein waviers are signed. Oh I forgot to mention that you are the one required to collect and file all lein waviers. **** of a system they have going there.

sorry for the vent...

 

[Farmwithjunk]

Illegal or not-a-licensed contractor? There is a difference.
It depends on where you live. This board is not state and community specific.
Do your research.
Don't judge.
IF it's illegal and you know it report it.

Operating a business without filing federal income taxes on income generated is illegal in ALL states.

Operating a business without carrying workers comp insurance is illegal in MOST states.